Small Business Loans in South Dakota

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Business Loans for Companies in South Dakota

South Dakota, a state most known for its famous Mount Rushmore, has a diverse economy that caters to more than just tourism. Like most Midwestern states, South Dakota relies heavily on agriculture, manufacturing, and mining to drive its economy. The state is home to a few large corporations, but small and middle-sized businesses are the backbone of its local economy.

Mining Loans in South Dakota

South Dakota is a mineral-rich state with copious amounts of copper and silver throughout the region. The state's mining industry has powered on after one of the largest gold mines in the nation, located in the Black Hills, was shut down in the early 2000s. Business owners are reliant on equipment financing in South Dakota to purchase new equipment and machinery in the mining industry

Tourism and Hospitality Loans in South Dakota

The tourism and hospitality industries are vital to the economy in South Dakota. With beautiful landscapes and attractions like Mount Rushmore and the Black Hill caves, visitors from around the world flock to South Dakota every year.

Visitor numbers continue to grow, and the tourism industry provides close to 4 billion dollars of revenue and over 40,000 jobs to the state's economy. Businesses use hotel loans in South Dakota to supplement the tourism industry's seasonality.

The casino industry is also a major source of revenue in South Dakota, with large casinos scattered across the state.

SMB Compass provides small business loans in South Dakota to a wide variety of industries and businesses.

We offer loan programs in South Dakota from $25,000 up to 100 million dollars in the form of equipment financing, SBA loans, asset-based lending, bridge loans, invoice factoring, and business lines of credit. 

Schedule a call with a Lending Advisor today to learn more about the business loan options in South Dakota.

Small Business Loans in South Dakota

Business Line of Credit

A business line of credit is structured like a credit card. Lenders give you a predetermined credit limit, and you can withdraw from it as needed. You only need to pay for the amount withdrawn, plus interest - not the entire credit limit. It's a revolving line of credit, so your limit goes back up once you repay your dues.

SBA Loans

The Small Business Administration created SBA loans to help small businesses access affordable financing. It's one of the most popular options among small business owners because the Small Business Administration guarantees up to 85% of the loan, incentivizing lenders to approve your application. These loans have higher loan limits, lower interest rates, and extended repayment periods compared to other forms of financing.

Asset-Based Lending

Asset-based loans rely on the value of your assets rather than cash flow and credit. You can use inventory, accounts receivable, equipment and machinery, purchase orders, and commercial real estate as collateral. It's an excellent option for small business owners with valuable assets who can't qualify for other business loans.

Invoice Financing

Invoice financing allows you to use outstanding invoices in exchange for working capital. Lenders give you up to 90% of the total invoice value upfront, and you can use it for any business expense. You'll receive the remaining percentage (minus a fee) once your customers pay their dues.

Business Term Loan

A business term loan is a classic loan where lenders give you a lump sum that you need to repay within a fixed period, plus interest. It's usually repaid on a monthly basis, but some lenders may require weekly or bimonthly payments. Many business owners like the simplicity of a term loan and its spending flexibility.

Equipment Financing

Equipment financing is an excellent option for businesses in South Dakota that heavily rely on equipment, like medical practices, construction, agriculture, and hospitality. This small business loan gives you the resources to purchase or lease equipment, including heavy machinery, furniture and fixtures, office equipment, and company vehicles.

Inventory Financing

Inventory financing uses your inventory as collateral to secure a loan. This means you don't need to pledge any personal and business assets to get funding, but lenders may repossess your inventory in case of a default. Borrowers typically receive up to 80% of their inventory's appraised value.

Small Business Grants and Resources in South Dakota Small Businesses

Grants are free money from corporations, nonprofit organizations, and state, local, and federal governments. Here are some of the options and resources you can check out:

How to Use Small Business Loans South Dakota Small Businesses

  • Acquire a small business
  • Refinance existing loans and credit card debt
  • Purchase or refinance commercial real estate
  • Buy or lease machinery and equipment
  • Purchase inventory and raw materials
  • Improve cash flow
  • Marketing and advertising campaigns
  • Upgrade technology and business software
  • Renovate existing office space
  • Day-to-day operating expenses

Ready to apply for a Business Loan?

Small business loans available in every city in South Dakota

  • Yankton

  • Pierre

  • Huron

  • Spearfish

  • Box Elder

  • Vermillion

  • Brandon

  • Rapid Valley

  • Sturgis

  • Harrisburg

  • Madison

  • Belle Fourche

  • Tea

  • Dell Rapids

  • Dakota Dunes

  • Milbank

  • Hot Springs

  • Hartford